American Tire and Recycling isn't coming to Racine, a company official said Wednesday.
"We're still trying to find our direction," said Tom Tomaszewski, sales and marketing manager for American Tire and Recycling. "Racine as we initally identified it is not going to happen."
American Tire and Recycling had planned, with assistance from the city, to open a tire recycling operation at 2301 S. Memorial Drive. The company initially planned to hire 33 workers and 20 truck drivers with the intention of hiring 88 people within 18 months.
Tomaszewski said the economy prevented the company from expanding like it had intended.
"It's a simple fact that the current economic climate makes expansion, even with help, extremely difficult," he said.
The city had agreed to spend $39,600 to cover American Tire's rent for 18 months.
Tomaszewski said he worked with some "very impressive" people to try and make the Racine expansion possible. He complimented Jenny Trick of the Racine County Economic Development Corp. and her staff for their efforts.
"We appreciate the city's offer, but the bigger pieces weren't going to happen," Tomaszewski said.
"Money isn't available from any source," he added.
American Tire is operating at two sites. It's collecting tires in New London, located northwest of Appleton, and shredding tires in Niagara, Wis., which is located on the Wisconsin-Michigan border.
The company is owned by Keary Ecklund, who referred questions to Tomaszewski.
The city approved spending the $39,600 for American Tire and Recycling's rent in December.